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Vianet launches share buyback to reduce capital

Published 12/03/2024, 08:06 PM

LONDON - Vianet Group PLC, an international provider of internet-enabled, cloud-based telemetric and data services, announced today its plan to initiate an on-market share buyback program. The buyback is intended to reduce the company's share capital and will be funded from Vianet's existing cash resources.

The program, approved by shareholders at the annual general meeting on July 18, 2024, will commence immediately and is set to continue until the conclusion of the 2025 AGM or July 18, 2025, whichever comes first. The company specified that the maximum price per ordinary share will not exceed 5% above the average middle market quotations for the five business days before the purchase.

Transactions will be conducted on the open market, subject to market conditions, share price, trading volume, and other factors. Vianet has stated that purchases will not occur during company close periods and that all repurchased shares will be cancelled.

Due to limited liquidity of Vianet's ordinary shares on the AIM segment of the London Stock Exchange (LON:LSEG), buyback transactions on any given day could represent a significant portion of the daily trading volume, potentially exceeding 25% of the average daily volume. Consequently, Vianet will not qualify for the exemption contained in Article 5(1) of Regulation (EU) 596/2014.

The company has clarified that there is no certainty that any purchases will be made under the program. Further announcements will be made following any such transactions.

As of today, Vianet's total issued share capital stands at 29,438,164 ordinary shares, each with one voting right. The company holds no shares in treasury, thus the total number of voting shares remains unchanged. This figure serves as the denominator for shareholders to calculate notifications of interest changes as per the FCA's Disclosure Guidance and Transparency Rules.

This share buyback announcement contains inside information as per Article 7 of EU Regulation 596/2014, which is part of UK law after the European Union (Withdrawal) Act 2018. This statement is based on a press release from Vianet Group PLC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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